Annual Report 2008 - Axiata Group Berhad - Investor Relations

President and Group Chief Executive Officer’s Business Review(cont’d.)At the same time, the original capex budget has beenreduced by at least RM1 billion. Care has been takennot to do so at the expense of our future competitiveposition. Strong emphasis will be made on improvingcapacity utilisation and efficiency, as well asprocurement savings. Non-critical capex will be deferredor not pursued.Our OpCo CEOs-led talent management process hasbegun but will be populated with talents from allOpcos and the corporate centre by the second quarterof 2009. The initial phase of the Leadership DevelopmentProgramme and for identified managers will becompleted this year.Finally, for 2009, our M&A plans have also been furtherrevised. We have taken a more conservative stance.There will be less focus on M&A except where it isvery compelling. Emphasis will be on in-countryconsolidation, where the opportunity presents itself.We have instituted stricter financial disciplines with anincreased hurdle rate for new investments with arigorous business case.In summary, while it will be a challenging year, we aregeared up to face 2009. We have revised many of ourtactical plans to be more cautious yet agile to act onnew opportunities. Overall, we will remain steadfast onour long term strategies and direction.In light of the prevailing challenges in our operatingenvironment, we are also assisting the OpCos in theprocess of revising their respective strategies andbusiness plans.Celcom will continue with its segmented strategy andwill accelerate its mobile broadband initiatives, whilsttransforming two critical elements of the companynamely, its human capital development and customertouch points.XL will improve its capex utilisation and refocus ongeographic areas that they are already strong in.Improved loyalty and retention programmes will alsobe introduced.ACKNOWLEDGEMENTSThroughout 2008, we have been working hard layingthe foundations for our continuous growth.I would like to extend my thanks to the Board ofAxiata for their guidance and support in this first yearof our new journey. On behalf of the management, Iwish to pay tribute to our 25,000 dedicated employeesand our 89 million customers. I would also like toexpress my appreciation to the governments andregulators in the countries that we serve, and to all ourstakeholders, namely shareholders, business partners,the media and others for their support. Thank you.Dialog’s main focus will be on cost management, whichrequires a structural change. Many initiatives will bere-prioritised for better focus and effectiveness.Aktel will continue with its turnaround strategies ondistribution improvements and aggressive marketingand packaging, but with a focus on its existing customerbase, given the high SIM tax in the country.Dato’ Sri Jamaludin IbrahimManaging Director / Presidentand Group Chief Executive Officer36Axiata Group Berhad Annual Report 2008(formerly known as TM International Berhad)